Head Of Rolex UK Spills The Beans

[Dr. Robert]

Originally Posted by inadeje

What amazes me is that (some of?) my fellow forum members honestly think that Rolex has its head in the sand. Let it be said that this gigantic company will have a whole team dedicated exclusively to business intelligence. They know everything, I mean “every single thing”, for every world market, every idiosyncrasy, every detail, all the time...

I concur, big Wilsdorf is watching us

[ROLEXster]

This whole current Rolex situation is out of hand.
I don't even think Rolex can do anything to fix the issues.
99% of regular customers will not get a hot model except buying from grey.

Only thing I see Rolex doing is push Tudor on to Rolex SS buyers.
BB Chrono is a great buy for $5K cad.
Where as a SS DayC from grey is going for $30K cad.

Local Tudor AD told me their sales increase big time due to Rolex SS not available at ADs.

It's a win-win for Rolex right now.
They are selling everything with 0 discounts.
Tudor selling well.

Why would Rolex want to change anything ?

[TheDude]

“Fix” the shortage? No.

But is it smart to bump production a bit (10% perhaps?) to feed a bit more in this boom? Definitely. Will we notice even a moderate increase in production? No.

Like any good company that’s been around a while, they know to take advantage of good fortune because everything is cyclical. Even if demand doesn’t wane, the economy won’t support the dynamics of today’s SS market forever.


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[train-time]

Originally Posted by Rosex

That! Rolex does not need our help or tips in running their business.

Most people bitching are actually not their target market.

Spot on!!

[donaldizuru]

Originally Posted by oldman2005

Of course Rolex is not doing anything because this is Rolex sale strategy for the past 2 years: Less SS sport and much more DJ/TT/PM which are Rolex bread and butter, Your AD cannot survive selling a few SS sport a month so does the multi-billion dollar Rolex Corporation. Profit is being maximzing pushing the higher profit margin watches.
This a great thing for many as it causes the increase retain value of your SS sport pro watch. Great bussiness for Rolex and ADs and unrealized profit for SS sport pro owners

Originally Posted by Fleetlord

This might be a painful and unfathomable concept for many a WIS, but an $8500 Stainless Submariner Date is really NOT what Rolex wants to sell. It might be what a WIS wants to buy because of all the lore and nostalgia associated with it, but Rolex (and AD) would much prefer you to buy a TT or PM version of that watch....and buy them the general public are..

The general public was always willing to spend MORE on a Rolex...now Rolex is helping them do so..easy as that.

[SS Oyster]

Adrian is a pretty cool bloke. I like to watch his YouTube channel, but not sure how his general watch videos translate is Bark & Jack NATO strap sales.


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[VacherObsessive]

With the market completely exploding in the Far East and other emerging markets in SE Asia / Africa / S America too, ADs opening to cover the demand but production not increasing, the butter has become spread too thin. Best thing to settle things in the West is to consolidate ADs as what is the point in having so many ADs with hardly any stock?
I have no idea how many ADs are in london england, it’s dozens maybe 100. But they’re mostly empty. The big Rolex store in Covent Garden had literally nothing but ladies DJs.

[kog]

Thank you Rolex, quality can't be rushed and a few of us know that.

[Jakx]

Originally Posted by Fleetlord

This might be a painful and unfathomable concept for many a WIS, but an $8500 Stainless Submariner Date is really NOT what Rolex wants to sell. It might be what a WIS wants to buy because of all the lore and nostalgia associated with it, but Rolex (and AD) would much prefer you to buy a TT or PM version of that watch....and buy them the general public are..

The general public was always willing to spend MORE on a Rolex...now Rolex is helping them do so..easy as that.

Thank you for your consistent and correct input into the situation. In another post I just mentioned how now the main Geneva dealers (Bucherer and Chrono Time) actually say SS professional line is not available for direct purchase. One must be part of the waitlist system and wait (5 years was mentioned). It's the new normal at least in Geneva and presumably for the rest of Bucherer in Switzerland.

[rudestew]

No I’m already over this whole Rolex shortage thing , great tactics in pushing me more towards the Tudor’s that worked lol .

[toneafficianado]

Great tactics in getting us to not ever bother going to an AD ever again perhaps!?
Waste of time.

[Russell996]

Originally Posted by Gaijin

Of course they are not going to do anything about it. The goose is laying golden eggs.

How do these ADs pay their bills? Overhead. Rent, employees salaries. They are getting watches they are just being sold out the door to greys and VIPs or bundled.

No store stays open that isn't selling anything. Unless it is a front for money laundering.

These ADs are getting models in. They are just going out the back door or bundled.

ADs have found a sweet spot to maximize profits. I venture to say that virtually no AD is going to sell a Ceramic Daytona or any "popular/rare" model to anybody at MSRP. Greys are paying a premium. Then bumping up the price more.

I don't even believe the theory that grey dealers have to buy a bunch of smaller or ladies Datejusts just to get a Daytona. There are not a bunch of ladies Datejusts on grey websites. There is no shortage of Datejusts at most ADs.

Once in awhile we hear a nice story about how some local AD did the right thing and took care of a customer or actually put a shipment on display.

There is no shortage at greys.

Originally Posted by Turb0wned

I'm so glad someone on here understands whats really going on. People on here and the facebook groups keep throwing the words, "rare" "shortage."

Originally Posted by Pw92676

I think your summary is spot on.

So much nonsense in 3 consecutive posts.

If this is the standard of the posts I can’t be bothered to read on, had already watched the video and drawn my own conclusions.

[Robbyman]

Cannot stand that Bark guy.

[Harry-57]

Just some random quotes. I'm not singling out, just musing.

"...There is no shortage at greys..."
"...If Rolex wanted to meet the demand of sport models, they could very easily..."
"...They are doing what they think they need to do..."
Examples of the kind of thinking which could run a good business.

"...aware of the shortages..."
"...doing it on purpose..."
"...fix the issues..."
Examples of the kind of reasoning that could ruin a good business.

This doesn't only apply to watches. Some understand that to sell you things, a dealer must be in business, with all the wheeling, dealing, profit generation and manoeuvring which this entails. Some seem to believe that a dealer should be prepared to cut their margins to minimum (or possibly zero) for very special cases, like them. But only for them.

[greengold]

Originally Posted by VacherObsessive

With the market completely exploding in the Far East and other emerging markets in SE Asia / Africa / S America too, ADs opening to cover the demand but production not increasing, the butter has become spread too thin. Best thing to settle things in the West is to consolidate ADs as what is the point in having so many ADs with hardly any stock?
I have no idea how many ADs are in london england, it’s dozens maybe 100. But they’re mostly empty. The big Rolex store in Covent Garden had literally nothing but ladies DJs.

100 lol less than 10 more like

[PeterC4]

Originally Posted by Gaijin

Of course they are not going to do anything about it. The goose is laying golden eggs.

How do these ADs pay their bills? Overhead. Rent, employees salaries. They are getting watches they are just being sold out the door to greys and VIPs or bundled.

No store stays open that isn't selling anything. Unless it is a front for money laundering.

These ADs are getting models in. They are just going out the back door or bundled.

ADs have found a sweet spot to maximize profits. I venture to say that virtually no AD is going to sell a Ceramic Daytona or any "popular/rare" model to anybody at MSRP. Greys are paying a premium. Then bumping up the price more.

I don't even believe the theory that grey dealers have to buy a bunch of smaller or ladies Datejusts just to get a Daytona. There are not a bunch of ladies Datejusts on grey websites. There is no shortage of Datejusts at most ADs.

Once in awhile we hear a nice story about how some local AD did the right thing and took care of a customer or actually put a shipment on display.

There is no shortage at greys.

I agree that the MSRP is just wrong. Demand would dictate higher prices. But I question weather ADs en masse are selling to the grey market. There are definitely purchasers/resellers selling to the grey market. Based on my very recent purchase at my AD, stores are registering the watches and removing stickers before the watch leaves the store. Theoretically at least, Rolex knows who is buying the watch and there is a definite preclusion put upon ADs from selling above list price. The large prominent dealers seem to be complying with this, at least where I live. Now I suppose the deals could be structured with reselling agents who buy at list and then structure other payments. But why go through the risk as an AD when you can sell the watches a full list price almost instantly? I suspect the margin is quite good and when you get a shipment of SS models in you just have to wait a day or so to clear them. I believe it's a simple case of perceived prices that are low, demand is high and the watches don't last in the store long enough. Then there are buyers/resellers who can make a quick $5,000 or more in an instant and have no interest in the watch itself.

As to prices, I think all buyers have to stop and pause for a moment. Rolex makes a good, robust watch. But the prices for these SS models seem unrealistic to me. As long as the fan base is there I suppose the prices will be sustained. But the new generation of consumer is very different. My staff recently threw an office celebration for my birthday. They gave me a watch as present, a model I would not buy for myself. It was an Apple Watch. Go to a meeting today with young people at the table. Some of the senior guys are wearing mechanicals. The juniors and younger mangers are wearing smart watches or radio controlled solar watches most of which are around $750 or less.

When Paul Newman's Daytona can sell at auction for $17.8 million with the buyers commission included, you have to ask yourself whether we are in a period like the Tulip craze in the early 1600s in Holland. It feels like it.

[cervie599]

Is a Nautilus really all that direct from a Datejust......is it +20k(at minimum) different. This industry is too crazy right now. Name another country that runs out of inventory for an entire year. This is not normal.

[burnthesehills]

Originally Posted by Gaijin

Of course they are not going to do anything about it. The goose is laying golden eggs.

How do these ADs pay their bills? Overhead. Rent, employees salaries. They are getting watches they are just being sold out the door to greys and VIPs or bundled.

No store stays open that isn't selling anything. Unless it is a front for money laundering.

These ADs are getting models in. They are just going out the back door or bundled.

ADs have found a sweet spot to maximize profits. I venture to say that virtually no AD is going to sell a Ceramic Daytona or any "popular/rare" model to anybody at MSRP. Greys are paying a premium. Then bumping up the price more.

I don't even believe the theory that grey dealers have to buy a bunch of smaller or ladies Datejusts just to get a Daytona. There are not a bunch of ladies Datejusts on grey websites. There is no shortage of Datejusts at most ADs.

Once in awhile we hear a nice story about how some local AD did the right thing and took care of a customer or actually put a shipment on display.

There is no shortage at greys.

I bought a Submariner at an AD this past December. First and only purchase from them.

Most AD’s sell more than just Rolex watches. It’s not their sole or even primary source of revenue.

I doubt most AD’s play the game that you have suggested. And I think the current situation is just a matter of supply versus demand. Rolex has been in business for a very long time. Lots of conspiracy theories and “I talked to a guy who told me...” stories.

[904VT]

Originally Posted by Lemonvr6

Some of you have the issues, not Rolex

I don’t know I can get more or less any Rolex I want from my AD within a year save for the Daytona C and Sky D blue SS. I’m loyal to my Rolex AD, express my enthusiasm for watches and Rolex, follow thru on my requests with them and they always treat me professionally. I’m at the point now where I have too many SS models so need to look to PM for additions, so SS isn’t that big of deal for my collection at this point in time luckily. Also the DJ41 you can find anywhere and a great watch.

Rolex though does have an issue because they really aren’t in the business of selling as many watches as they can in the short-run as so many seem to think but rather long-run brand stability and marketplace relative position at the top. I guarantee you Rolex is concerned of the situation. By not allocating their professionals Rolex is losing brand goodwill with enthusiasts clients, which I would argue is the most detrimental issue of all. Top of a market expansion sees wealthy buy Rolex to keep up with the Jones’, while market downtown leaves only the WIS purchasing like 2009. It would be in Rolex’s best interest to build back up goodwill with their loyal customer base of enthusiasts. And enthusiasts aren’t those buying only PM.

[bewithabob]

Gosh I’ve missed the TRF!

[audipwr1]

They are making plenty of watches - bull market and zero interest rates to buy stuff is the problem

[GBD]

I don't blame Rolex for not producing to meet current demand. Demand is high now, and a lot of folks have money to burn, but Rolex knows that will change. I'm sure they don't want to get caught out with excess inventory; we've seen what that's done to other brands.

[jaroush]

Why did all of this change so dramatically around 2 years ago? Before that, the AD's around me had all the SS subs, SD's and GMT's you'd want. For a good 10 years, I would regularly go look at and try on watches during lunch hour. All the sudden, sometime in 2017, the whole picture changed. It's really hard for me to believe the demand level changed all that much in one year. Rolex must have changed their production mix in a significant way at that time.

[greengold]

Originally Posted by ROLEXster

This whole current Rolex situation is out of hand.
I don't even think Rolex can do anything to fix the issues.
99% of regular customers will not get a hot model except buying from grey.

Only thing I see Rolex doing is push Tudor on to Rolex SS buyers.
BB Chrono is a great buy for $5K cad.
Where as a SS DayC from grey is going for $30K cad.

Local Tudor AD told me their sales increase big time due to Rolex SS not available at ADs.

It's a win-win for Rolex right now.
They are selling everything with 0 discounts.
Tudor selling well.

Why would Rolex want to change anything ?

You assume they WANT to fix your 'issues'

[jrs146]

Why would Rolex do anything about it. It's taken a few years, but they have achieved exactly what they sought out to do. Have you taken a look at display cases?

First the popular steel models were hard to find

Next it seemed like even the Explorer I, Explorer, II and other less "desirable" steel models became non-existent

Then the two tones started disappearing.

Now you can't even find a gold professional sports model in stock.

Literally all that's left are ladies date-just's.

Rolex found a way to literally sell every watch in the case.

[JUSTIFIED]

Originally Posted by inadeje

What amazes me is that (some of?) my fellow forum members honestly think that Rolex has its head in the sand. Let it be said that this gigantic company will have a whole team dedicated exclusively to business intelligence. They know everything, I mean “every single thing”, for every world market, every idiosyncrasy, every detail, all the time...

Exactly. They are the best in the game at this game. Like we all know more than they do. Lol.

[No SUBctitute]

Originally Posted by Fleetlord

This might be a painful and unfathomable concept for many a WIS, but an $8500 Stainless Submariner Date is really NOT what Rolex wants to sell.

This seems reasonable. Rolex would rather sell a TT or PM for multiples of the price. But if Rolex thinks it doesn't make enough money off of an $8500 watch, why does it make OPs and lady DJs with a much lower price point that just sit in the case? If Rolex put its watchmaking resources into producing more $10k professional models and less into producing mens and ladies DJs that have a lower price point and are harder to sell, it would seem like a good business decision. Just curious.......Rolex def doesn't need my advice.

[Piefacerecords]

Originally Posted by GBD

I don't blame Rolex for not producing to meet current demand. Demand is high now, and a lot of folks have money to burn, but Rolex knows that will change. I'm sure they don't want to get caught out with excess inventory; we've seen what that's done to other brands.

Exactly. It’s the same reason they don’t just jack up MSRP to meet the market. It’s a very hard doodle to undiddle if the market shifts. And let’s be honest, low depreciation is a major pillar of Rolex’s value prop, even for the WIS crowd.

[donq]

Never have so many,
Said so much,
About something they know so little...

[brmeyers]

^^ I think this statement above is accurate.
I am curious if anyone Here REALLY knows what is going on?
My guess is no, though perhaps some more than others.
The people I WANT to hear from are the ADs and Greys that do this FOR A LIVING.
Not the armchair WIS who sit at home in front of their computer, and "think" they know.

Maybe someone can do a documentary and try to interview all the main ADs and Greys in the market and get some different perspectives from people that SELL watches for a living and maybe even some real straight talk interviews with Rolex Corporate.
That would be cool and perhaps revealing, but even then I suspect there will be many differing views and opinions as to what is really going on.